Please describe the goal of your initiative; outline what you are trying to achieve
The ultimate goal is through innovation, create companies that will solve systematic problems within a community where governments and existing financial institutions fail to address. In the process, give underserved markets the ability to
1. diversify personal income stream
2. become banked
3. increase personal credit rating to obtain bank loan
4. invest incoming remittance money
5. enable access to new financial products on micro-level
6. provide incentives for other financial institutions to tailor similar solutions in order to compete for market share
7. foster an ecosystem that promotes the practice of opportunity entrepreneurship
Which barrier(s) to financial inclusion does your solution seek to address? (select all applicable)
Physical and other accessibility obstacles that prevent communities from reaching financial services, The lack of affordable financial products tailored to the needs of underserved and excluded communities,, Powerful incentives for financial service providers to move up-market, Other (Please describe below).
If you selected 'other' above, please specify which other barriers to financial inclusion you solution seeks to address:
The inability to converte remittance money flow destined for sustainance and quasi purchase into investment
For which underserved or excluded communities will your solution create access to valuable, affordable, secure and comprehensive financial services?
1. Those earning less than $5 per day
2. Those that live in urban and remote locations that does not have local banks
3. Those that have been unable to obtain a bank loan
4. Economies that are mostly driven by necessity entrepreneurship
5. Those that have been unable to make financial changes to their positions years and possibly for generations
Could your solution work in other geographies or regions? If so, where?
It can help people living in India make vertical leaps into other classes within one generation.
It can help people living in countries in the Caribbean like Jamaica buy out foreign electric management company that have been raising the cost of electricity in order to increase profits. This practice has resulted in businesses shutting down and other irreversible community loss.
It can help people living in Latin America create competition that can encourage monopolies to drive down cost.
It can help people in Africa create major companies that address local needs and displace poverty.
This can even work in the US:
For example, if equity position is taken in energy company Mobile. The portfolio manager and participants would decide how to channel profits to members. Should they decide to collectively create a debit card technology where profits are allocated quarterly to the card to offset the cost of fuel. Alternatively they can acquire enough shares to run mobile.
If your solution is dramatically successful, how will things be different in 10 years?
In 10 years, we would see a correction in the methodology of capitalism.
Capitalism is good; however it has lost its ways.
People have been placed on the back burner in exchange for profit maximization. Profit is good but when it discards the value of lives and its customers in exchange for Alpha, it is irresponsible. We would move in an era where conglomerates encompass the value of their communities when they do business.
We would see more frontier and emerging markets solve their own problems through private companies that practice opportunity entrepreneurship. We would see a sharp rise in the number of middle class families.
Global remittance flow would decrease because families are able to financially care for themselves.
Lastly, we would see a decrease in the number of unbanked and underserved financial market users as they migrate unto banked platforms.
What will have had to have changed to make this happen?
1. Conventional and high net worth investors would have to suddenly value their local community over wealth.
2. Something extremely bad would have had to occur within the country for change to take place. Rwanda is the perfect example. Haiti is currently fermenting.
3. Communities would have had to find natural resources in their backyard to change the course of their financial position and ascend into middle class.
4. Native land economies would have to significantly be better for migrant workers to either return home or have no need to send money home.
What has been the impact of your solution to date?
After due diligence on 10 companies, we finally selected our first company, Perle Hospitality S.A.
We raised first round of funding for Perle Hospitality through private placement.
We are Currently working on October 2012 IPO efforts in Haiti. .
Impact of our first company:
1. The average hotel construction requires a minimum investment of $5 million. Perle innovative approach crowd sources mansions from home owners. These underutilized assets create a network of private residence hotels at the cost of $126,000.
2. Most items for the hotel network have been sourced locally. This is creating a ripple effect in the economy.
3. Home owners that usually send money back home to families can now offer jobs to family members as opposed to sending remittance money. This reverses decade long remittance practice for these home owners.
4. These hotel networks employ more people than conventional hotels given geographic distribution. Perle provides a location near where they work.
What is your projected impact over the next five years?
1) Fund at least 10 game changing companies
2) Solve 5 of top 10 pressing problems in Haiti through these companies
3) Create over 50,000 direct jobs and 150,000 indirect jobs
4) Move 1.5 million people in Haiti from unbanked to banked status
5) Engage Haitian Diaspora in Haiti’s reconstruction.
6) Share my success and mentor four other economies about how to replicate this effort.
What barriers might hinder the success of your project? How do you plan to overcome them?
1)IPO Regulation in US
IPO will be conducted in Haiti where there are very limited regulations
2)Public trust in our financial product
Marketing push by leveraging my connections with radio owners, actors, filmmakers and organization leaders.
3)Identify entrepreneurs with the right mindset that will respect contracts. After doing due diligence on 10 companies, we realized that mindset and respect for contract was a challenging character to find.
We would have to look at a high volume of prospect in order to find the gem in the boulder.
Winning entries present a strong plan for how they will achieve and track growth. Identify your six-month milestone for growing your impact
10,000 participants and 100,000 shares sold in the first IPO. Underserved markets make up 60% of all participants.
Now think bigger! Identify your 12-month impact milestone
30,000 participants and 2 successful IPOs conducted. Underserved markets make up 60% of all participants.